Savings Account Interest CalculatorWith Compound Interest Calculation

Help you to forecast the future compound interest earnings on your regular saving account deposits.

This free online Savings Account Interest Calculator will calculate the compound interest earnings on saving accounts given the rate, length of time, initial deposit, periodic deposits, and compounding frequency.

Plus, unlike some online saving compound interest calculators, the calculator on this page includes an option for calculating interest on savings accounts that offer daily compounding.

A Savings Account Can Save You Money and Worries

When most people think of savings accounts, they immediately think of these as being the poorest of all investments. And while they may be correct in terms of the lower interest rates offered, they are not considering all of the benefits of investing money into a regular savings account. Here are a few of the benefits that most people fail to consider.

1. Gain Peace of Mind
The savings account interest rate might be low, but where else can you store money where the safety of your money is guaranteed and insured? Having your funds federally insured against loss can give you peace of mind that you can't get from potential high yield investments that come with the constant fear of losing your principal.

2. Save Money By Becoming Your Own Banker
If you faithfully and continually contribute money to a savings account, over time you will be able to borrow money from yourself when you need it instead of paying interest on a bank loan, or worse, paying the outrageously high interest on a credit card balance. Becoming your own bank can save you thousands of dollars in interest charges over the course of your lifetime.

3. Save Money By Becoming Your Own Insurance Company
If you faithfully and continually contribute money to a savings account, over time you will be able to increase the deductibles on your insurance policies (self-insurance against modest losses). This has the potential to save you thousands of dollars in auto, home, disability, and health insurance premiums over the course of your lifetime.

4. No Penalties or Fees for Spending Your Own Money
Unlike most other types of investments, regular saving accounts don't come with early withdrawal penalties. If unforeseen events force you to withdraw your funds from a safe high yield investment that penalizes you for early withdrawal, you can end up earning less than what you could have earned on a regular savings account.

A Savings Account Is Not A Spending Account

All too often I witness people confusing a savings account with being a spending account. They put money in their savings only to drain the account before their deposits have any time to earn any interest at all. This is a very costly habit in terms of your financial future.

A savings account is for saving money for the long term. So the only way to gain the value of a savings account is to NOT get into the habit of spending from it. Once you get into the habit of spending from your savings account it will be very hard to break. Therefore, if you think you might need the funds anytime soon (less than 5-years), I encourage to deposit the money into a checking account instead. "Save" your saving accounts for saving.

Are You Using A Motor Home For Everyday Transportation?

Please be aware that complaining about low savings account interest rates while paying 18% on credit card debt is like complaining about gas prices while using a motor home for everyday transportation. If you really want to do something about low savings rates and high borrowing rates ... stop borrowing and start saving!

With that, let's use the Savings Account Interest Calculator to calculate the interest on a savings account.

Savings Account Interest Calculator

Instructions: Enter the starting amount (optional), enter the annual interest rate, enter the number of months or years you would like to calculate savings interest for, and enter the periodic deposit amount for the selected frequency.

Next, select the compounding interval of the savings account and then click the "Calculate Interest Savings Account" button.

Mouse over the blue question marks for a further explanation of each entry field. More in-depth explanations can be found in the glossary of terms located beneath the Savings Account Interest Calculator.

Savings Account Interest Calculator Glossary of Terms

Starting amount: The current balance of your savings account, or the initial deposit that is not part of the periodic deposits. This field is optional as long as you enter a periodic deposit amount. The savings account interest calculator will need either a starting amount, a periodic deposit, or a combination of both, in order to calculate the interest earnings.

Annual interest rate: The annual interest rate that the savings account will be earning. Enter as a percentage (for .02, enter 2%).

Number of months/years to calculate interest for: The number of selected periods (month or years) you would like the savings interest rate calculator to calculate interest for. Enter integers only (no decimal points). If you would like to calculate interest for partial years, select Months and enter the total months (example: for 5-1/2 years, enter 66 months).

Periodic savings deposit amount: The periodic deposit amount for the selected deposit interval. Note that the savings account interest calculator bases its calculations on 360-day years to accommodate daily compounding for monthly, semi-monthly, quarterly, and annual deposits, so please allow for weekly and bi-weekly annual deposit differences (52 weeks and 26 bi-weeks each add up to 364 days, not 360 or 365 days).

Compounding interval: Select the compounding interval that applies to the savings account. Typically, the more frequent the compounding, the more interest you will earn when all other variables are equal.

Future value of savings account: This how much your savings account will have grown to for the number of entered months or years. Note that due to various methods of rounding and dealing with popular time-frames that don't divide evenly into 365 days, results may differ from one online savings calculator to the next.

Total deposits: This is the total of your beginning amount plus all periodic deposits for the entered number of months or years.

Interest earned on savings account: This is the total interest you will earn on your savings account for the entered number of months or years.